TGI Fridays sold in £300m deal that will take it public

November 12, 2019

TGI Fridays is poised to become a public listed company again after its parent company, TGIF Holdings, agreed a sale to blank check company Allegro Merger Corp in a deal worth $380m (£297m).

Blank check companies are typically listed organisations with no operations that raise money from investors via an IPO for acquisitions.

TGIF’s holders will receive a combination of cash and stock valued at $30m (£23m) and Allegro will assume approximately $350m (£270m) of net debt.

TGI Fridays has become a leader in international restaurant franchising with more than half of its 840 branches located outside of the US. It operates around 85 in the UK.

Related: Fast Food Franchises in the UK – 10 Things Every Would-Be Franchisee Must Know

Licensing accounts for over 70% of total profitability, according to the casual dining bar and grill concept, which was founded in 1965.

Last year the business generated sales of approximately $2 billion (£1.54m) and the average annual unit volume (AUV) was around $2.7m (£2.08m)

Within the past year, Fridays has made substantial improvements to its management team, bringing in CEO Ray Blanchette, a 19-year company veteran who previously led the successful turnaround and subsequent IPO of Ignite Restaurant Group.

Subsequently, he brought both John Neitzel and Jim Mazany back to Fridays to run franchising and company stores, respectively.

“The first order of business when I took over this company was to bring in the best talent to improve operations and innovation,” he explained. “This transaction is the next significant strategic move, and will allow us to gain public company status and access incremental equity capital to accelerate the rejuvenation of this iconic global brand.”

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Eric Rosenfeld, CEO of Allegro, which was incorporated two years ago, said: “Allegro’s board and I believe that Fridays is an unparalleled iconic international brand and we are excited to be able to bring this opportunity to our shareholders.

“Fridays’ highly predictable stream of franchise and licensing revenue is very attractive and we believe that Fridays provides a compelling value to our shareholders.”

News of the sales comes as TGI Fridays prepares to transition to a new management team in the UK. Long-serving chief executive Karen Forrester is set to depart in December after 12 years and will be replaced by former Virgin Active boss Robert Cook.


Source: FEJ

First look at the new TGI Fridays in Bolton

March 4, 2019

TGI Fridays opens its first restaurant in Bolton on March 21, four days earlier than initially planned.

The new Fridays is in Middlebrook Leisure and Retail Park in the former Next premises, next to Vue Cinema.

The pictures, posted online by Middlebrook, show the hoardings outside the premises have been taken down revealing the new signs and slick glass front.

Middlebrook Tweeted: “The hoarding is down and we have had a sneak peek into the new TGI Fridays Middlebrook and it is amazing!

“Officially opening 21st March.”

Excited fans of the franchise have been licking their lips in anticipation and have been sharing their excitement online.

The restaurant can sit up to 200 people at a time and offers the signature flame-grilled ribs, burgers and grills, the new restaurant will also have plenty of vegetarian and vegan options.

Fridays is creating 80 jobs in the area and has been recruiting since mid-January.

There are a variety of roles available to apply for on a number of different levels of seniority, with the restaurant also promising plenty of opportunities for promotion with full-training provided.

Related: Fast Food Franchises in the UK – 10 Things Every Would-Be Franchisee Must Know

When the store started recruiting David Carroll, property director for TGI Fridays UK, said: “There has been huge demand for a Fridays in Bolton for quite some time now, so we are delighted to confirm we are bringing the legendary Fridays flavours and experience to the city.

“The restaurant will feature the very best Fridays has to offer. We’re also very pleased to be creating a host of new career opportunities for those in the city looking to begin or progress their careers in the hospitality industry.”

TGI Fridays is the latest chain to move to Middlebrook, following the likes of Card Factory, Tapi Carpets and the region’s first Thomas Cook Discovery Store in late 2018.

A lot of space opened up at the retail park due to the £12million Next superstore in July.

Staff from the three former Next outlet stores were relocated to the bigger store, allowing other businesses to move in.

Source: The Bolton News